La redes urbanas de frio: una solución de bajo impacto ambiental y alta

eficiencia energética

Antonio Di Cecca

Engie / Climespace

antonio.dicecca@climespace.fr

+33689633376

INDEX

Chapter 1 District Cooling @ENGIE – General presentation

Chapter 2 District Cooling Benefits

Developement of DCS and ENGIE recent success Chapter 3

District Cooling @ENGIE

General presentation

ENGIE PRESENTATION Strong leadership positions

• #1 supplier of B2B energy efficiency services in the world

• 250 urban heating and cooling networks operated worldwide

• 140 millions of m2 managed in the tertiary sector

• 3rd seller of natural gas in Europe

• 3rd

largest LNG supply portfolio

worldwide .

• #1 distribution, # transmission network in Europe.

• Supply portfolio of 1.296 TWh

• #1 in storage capacity in Europe

• #1 Independent Power

Producer in the world

• 6th

provider in Europe .

• 115,3 GW installed power production capacity

• 10,5 GW production capacity under construction**

POWER

SERVICES

GAS

Operations in ≈ 70 countries

154 950 employees

CITIES & TERRITORIES: AT THE HEART OF THE ENERGY

TRANSITION IN A FAST CHANGING WORLD

DECARBONIZATION DECENTRALIZATION DIGITALIZATION

Source: IEA, Energy for All, 2011; MIT 2015

IEA Scenario “Energy for all” 2030

B2T & B2B

Microgrids

36%

B2C Off-grid Solutions

20%

Centralized

power generation

44% (80% today)

Cities

2 % of World Area

50 % of World Population

75 % of World Energy Consumption

80 % of World GHG

50% 50%

Heating and cooling Rest

Heating and cooling is 50% of EU's final energy consumption

37%

18%

45%

EU Industry EU Tertiary EU Residential

Buildings consume 60% of heating and cooling,

industry consumes most of the rest

EU TOTAL

Source : European Commission DG Energy, Renewable Energy

DISTRICT ENERGY & LARGE SCALE CHP @ ENGIE

District

Heating &

Cooling

Networks

The most effective solution to

decarbonize dense areas ; the

backbone of sustainable cities

ENGIE DHC Activities

250 Networks operated (internationally)

1,7 Bn € Turnover

2000 employees

9120 GWh/yr from CHP in France

By 2018 > 50% RES in all our DH networks

Key

fig

ure

s

Our

Ambition

Support development of DHC in key

geographical areas of ENGIE become

world leader in DC

Enhance our competitive advantages

Working jointly with BUs

Support BUs roadmaps

To reach our ambition (through tenders, partnerships, M&A, investments…)

DISTRICT ENERGY SYSTEM ENGIE international operations

1 DCS in the

Philippines

1 DHS in Portugal

16 DHC in Slovakia162 DHC in France

2 DHC in

Spain

2 DHC in

the USA

12 DHS in

Italy

3 DHC in Belgium

11 DHC in the UK

1 DHC in

New Zealand

1 DCS in

Malaysia

2 DHC in China

5 DHS in Poland

12 DHC in

Netherland 1 DHS in

Germany

4 DHS in Hungary

1 DHS in

Switzerland

District Cooling Benefits

DISTRICT COOLING: The solution for sustainable cities; a huge potential market

8

ASEAN

Latin

America

India

China

Cooling is set to expand 625%

by 2050 in selected regions of

Asia & Latin America.

World final energy use for cooling in the IEA’s

2°C scenario, 2010–2050 1

District Cooling A solution to answer cooling needs while

respecting major energy and

environmental issues

1 Source : IEA (2014b) 2 Source : Green cooling initiative

Evolution of

regulations (HCFC…)

Electricity Peak

demand in summer

CO2

emissions

Rules of architecture

World total

emissions of

cooling sector 2

3,740

Mt

Constraints

Income

rise

Climate

change

Urban

expansion

Co

oli

ng

en

erg

y d

em

an

d

gro

wth

facto

rs

By 2050

70%of the

population

will live in cities

DISTRICT COOLING Environmental benefits

Comparison of performance with stand-alone systems

Benefits of a DCS

Less electricity consumption

Improvement in energy efficiency

Less water consumption

Less CO2 emissions

Less usage of chemicals

Increased Coefficient of Performance

Flexibility & security of supply Use of natural

resources

Energy savings

IMPROVES Health and Safety

Visual & Noise Comfort Roof & Basement Free Space

District coolingA solution against concentration of heat in cities (Source: Climespace)

Heat island effect: Increasing temperatures in

the cities center due to:

— Heat dissipation from human activities

— Urbanization: higher heat absorption from solar

radiation

Strategic importance of choosing the type of

cooling technology by:

— Controlling the projected

energetic solution

— Meeting the cooling

demand

— Using latest technology

and systems that

respect the environment

Case study of Paris

The installation of conventional dry air

conditioning system significantly

increases the heat island during the

summer period1.› They contribute to an increase at night time of 0.5°C

in city center areas› If all the cooling demand is satisfied by conventional

units, and not from DSC, the impact will be in the order of 1°C to 2°C

› If by 2030 the cooling demand is met only by

conventional air conditioning systems the impact will be in the order of 2°C day time city centre, 2.5°C

night time and 0.5°C on the outskirt of Paris

1. Scientific report CLIM2 - CNRM-GAME, CNAM, Climespace

Refrigerants emissions

For information :

— District cooling CO2 content due to electricity consumed (according to decree of November 4, 2014) :

6 g CO2 / kWh chilled water delivered (calculated using 40 g CO2 / kWh electricity consumed )

*Inventaire des émissions des fluides frigorigènes France - Année 2011 – ARMINES, Mines de Paris Tech, EREIE (Déc. 2012)

CLIMESPACE district cooling environmental balance

Stand alone units District cooling

Leakage rate* > 10% < 1%

CO2 emission factor for R134a 1430 kg CO2/kg R134a

On the top of that, many efforts and investments supported by the DCS sector to obtain a wide recognized performance in refrigerant containment, always seeking the best energy efficiency.

EFFICIECY OF STAND ALONE SYSTEMS

By monitoring stand alone units it was observed that:

• Consumption of auxiliaries is underestimated (50% of power)

• COP degradation at partial load

• Large disparity between nominal (given by manufacturers) and real COP

70

75

80

85

90

95

100

105

110

0 20 40 60 80 100

Charge frigorifique en %

Rdt

en

char

ge p

artie

lle e

n %

Load (%)

Effi

cie

ncy

(%

)

HOW CAN WE EXPLAIN THAT ? B

ENEF

ITS

OF

DIS

TRIC

T C

OO

LIN

G ● Grouping production needs

Industrial chillers with High Energy Efficiency

Optimised process

● Continuous management of production

Starting of a production line only if necessary depending on needs

Chillers are always working at maximal efficiency

● Variability of needs with building uses

Great adaptability of delivery substations

One chiller operating at optimal efficiency on DC avoid

"n" monoblocs at partial load.

District CoolingA smart grid: the example of Climespace (Paris)

SMART plants connected to a

SMART GRID

Optimizedefficiency

Predictive & preventive maintenance

Use of advanced technologies

Real time management of

production parameters

Development of DCS and ENGIE recent success

Developing a DCSThe importance of the cities in initiating projects

• Many district networks were developed following a

major public event, a national reconstruction policy or a change in regulation which acts as a catalyst: the 98 Lisbon International Exposition, the 2004

Barcelona Forum, the 2008 Saragossa exposition or the 2012 London Olympic Games.

• Cities play a fundamental role as a regulator and a market facilitator, enabling easier access to :

• construction permits

• Overcome regulation requirements• Obtain subsidies

• Public can also ensure financial profitability by acting as a client and guaranteeing connections.

• Finally, the area must be attractive in terms of

needs concentration, and should allow a technical competitive advantage when compared to stand-

alone system (river, sea, waste to energy…).

Developing a DCSHow to make it grow?

• The involvement of cities can also influence the

orientations taken by the network: in particular it can give certain social or environmental orientations, such as a percentage of green energy or tariff control.

• Certain municipal policies can give incentives to connect to the network, or incentives not to pursue

stand alone solutions:

Architectural constraints:

- in Paris, French architects do not allow cooling tower

close to Monuments for construction or modification

permits

- in Barcelona, the necessity to install thermal solar

panels can be bypassed if you are connected to the

network

Fiscal aspects : lower IVA rate for final consumer

Obligation to connect in London

• Finally, the network must keep a competitive

advantage when compared to stand-alone basis and always look for being competitive.

Developing a DCS Financing the project through public and private involvement

• When the public sector is involved, the financing of these projects occurs through public investment. In such projects, the city takes on most of the risk.

• When the private sector is involved, the public sector can still provide important financial support:

- It means that other sources of finance become available, such as grants, local authority debt and development bank loans.

- The city can offer land as an equity contribution, which can provide collateral in raising financing, or it can provide tax incentives as source of finance.

• In our experience, most projects are financed internally, with the participation of local actors in SPV. The city can also provide land as a source of financing.

- In the case of the London Olympics, the project was fully financed by Engie Services, but the land was provided by the London Municipality.

•

District Energy networks are the backbones of

better cities:

Low carbon solutions

Reduction of heat island effect

High efficiency: synergies between heat/cold/power, both

for energy production and storage

Integrated vision of the OSU territory

Long term engagement in the territory

Coordination local / global: “a local player with a global

reach”

Creation of a DHC regional expertise center: a milestone

for deployment of DHC strategy

FOCUS ON A RECENT LANDMARK SUCCESS:ENERGY PARTNERSHIP FOR OHIO STATE UNIVERSITY

TABREED PROJECT

21

ENGIE + Tabreed …. ENGIE becomes the world leader in DC!

492

217247

448469

VattenfallNRG

208

Singapore

Power

EngieEnwave FortumMitsubishi

986

Marafeq

Qatar

Petronas

684

Emicool

166

Tabreed Empower Veolia

~1.2 GWc*

~1.5 GWc

~3.5 GWc*~3.5 GWc*

Total #DC(e)

Major DC operators (excluding municipalities) and corresponding DC operated capacity by country (MWc) – 2016 (e)

Source: Company reports, Interviews with district cooling operators, Emerton analysis & estimates

Country

Regional operator

International operator

* As reported by the operator

#DC > 100MW >9 >6

>7>30 >20

>8

>5

>2

6

3

3

3

14

1

6

3

2

2

2

2

2

1

4

1

2

1

(UAE) (UAE) (UAE) (Mal.) (Qat.)

(Qat.)

(Bahr.)

+ 12 major “private” DC operators mostly with regional

positions, Veolia and ENGIE the only ones present in several geographical areas;

APPENDIX

26

ENGIE POSITIONING: FROM INFRASTRUCTURES TO DIGITAL SOLUTIONS (WITH RELATED TECHNOLOGIES)

SECURITY/ SAFETY (ex. Integration of Systems)

PUBLIC LIGHTING (ex. Automation)

GREEN MOBILITY (ex. Traffic management)

3D PLANNING/ DASHBOARDS (ex. Simulation Software)

CONNECTIVITY (ex. Wireless Technologies)

DISTRIBUTED ENERGY (ex. Smart & micro-grids)

HEATING & COOLING (ex. Low CO2 energy)

BUILDING MANAGEMENT (ex. Automation, Smart)

Digital Solutions

Services

Infrastructures

NEW

CORE BUSINESSES

The combination of (A) ENGIE’s traditional businesses in infrastructures and services combined with (B) new solutions and (C) a strong knowledge of local authorities provides a unique competitive position

DIGITAL SERVICES (ex. App Development)

ENERGY PLANTS & NETWORKS (ex. New energies)

BENEFITS OF DISTRICT COOLING

Efficiency, security, ecology & architecture

Decentralisation of the economy and of the energy sector

More and more people directly interact with each other without intermediaries and regain control of their

consumption by participating to the production and sharing goods and services

More and more decentralized energy solutions are proposed on the market. As an illustration, individual passive

house can almost reach full energy autonomy by 2030 only via using solar panels & batteries

Urbanisation

The worldwide growing urbanization should reinforce the interest of DHC, especially in developing countries

DHC economics

DHC economics is based on its relative competition versus other energies (gas, power…) and its ef f iciency

Local policies regarding buildings Energy Efficiency, the share of RES & waste heat, and GHG & pollutant

emissions

Buildings’ Energy Ef f iciency: one of the main lever that reduced energy demand growth in the past years

RES development & integration (incl. waste heat): DHC can facilitate variable RES integration in the power system

GHG & pollutant emissions

A certain number of country specific trends affect (negatively and positively) - and will further affect in a near term - the interest of developing DHC

Paris District Cooling

Production Plant

Production plant (Seine)

Storage tank

Control room

Network

3 River water Energy

Production plants exploiting

Free Cooling

3 Energy Storage

1 Water Storage + 2 Ice Storage

6 Energy production plants

using Cooling Tower

1 Geothermal Energy

production Plant

Paris District Cooling

DCS ENGIE center of expertise

360 MW (102000 RT)of subscribed cooling power

5 million m²cooled by Climespace

72 km long network (the largest in Europe)

600 customers

410 GWh/year (117000 kRTh/year)of delivered cooling energy

Louvre, Opéra GarnierGaleries Lafayette, RATP

Assemblée Nationale, Ministère CultureGeorge V, Plazza Athénée, Le Crillon, Le

Ritz